Why did BHP spin off South32?
BHP demerged South32 so that it could stick with its four pillars. But we have since discovered that one of those pillars – oil and gas – included a parcel of overvalued assets in the US shale gas sector. These assets cost BHP about $US30 billion and will likely be sold for $US10 billion.
Why is it called South32?
“South32 is grounded in the southern hemisphere with our two regional centres, Australia and South Africa, linked by the 32nd parallel-south line of latitude. The name South32 represents the company's footprint and regional approach to managing its operations," he said.
Why was South32 created?
The rationale behind the BHP/South32 split was to allow the management of both entities to focus on their own growth trajectories to ultimately unlock greater shareholder value.